Data released by the National Bureau of Statistics of the Communist Party of China on May 17 showed that in April this year, the mainland’s commercial housing sales area fell by about 23% and the sales amount fell by about 21% from a year earlier. The drop was large.
According to a report by Securities Daily on May 20, the sales of two of the leading mainland real estate companies, Vanke and China Overseas Land Development (China Overseas Land), both suffered a significant drop in sales in April from a year earlier.
According to Vanke’s sales briefing for April, Vanke achieved contracted sales of RMB49.77 billion and contracted sales of 3.086 million square meters, down 20.80% and 28.15% respectively from March.
China Overseas Property’s contracted sales and sales area in April fell by 18.30% and 21.30%, respectively, from a year earlier.
The sales briefs of 19 larger Guangdong listed real estate enterprises also showed that 11 real estate enterprises in April sales fell back in the chain, accounting for nearly 60% of the 19 real estate enterprises in April sales growth rate of -18.54% on average. Among them, Yuexiu Real Estate contract sales in April fell 31.74% year-on-year, is the largest drop in the scale of Guangdong real estate enterprises. In addition, Agile Group, Midea Land, Long Guang Group, Jia Zhaoye Group and other sales in April fell by more than 10% year-on-year.
Jia Zhaoye Group announcement shows that the company’s March sales growth rate of 178.6% year-on-year, fell to 74.07% in April; Yuexiu Real Estate single-month sales growth rate of 136% from March to 42% in April. Large-scale real estate companies, such as Poly Real Estate’s year-on-year sales growth rate dropped from 79.78% in March to 36.22% in April, and Jindi Group’s year-on-year sales growth rate dropped from 108.36% in March to 88.65% in April.
And according to data from the National Bureau of Statistics of the Communist Party of China, the year-on-year growth rate of commercial property sales in April was about 32.47%, down nearly 26 percentage points from the year-on-year growth rate in March.
As for the reasons for the sharp drop in real estate sales in April, Yan Yuejin, research director of the Think Tank Center of the E-House Research Institute, believes: “The market sentiment in April was weaker than expected. From the actual process, policies around the strict control of the property market, credit policy contraction, objectively all make the sales data in April face certain pressure.”
On the surface, mainland real estate enterprises in April sales and sales amount fell, but housing prices are still rising.
In terms of new residential units, residential sales prices in four first-tier cities, Beijing, Shanghai, Guangzhou and Shenzhen, rose by 0.6% from a year earlier, an increase of 0.2 percentage points over the previous month.
31 second-tier cities new commodity residential sales prices rose 0.6%, or 0.1 percentage points over the previous month; up 4.9% year-on-year, or 0.1 percentage points over the previous month.
35 three line cities new commodity residential sales prices rose 0.4% ringgit, up 0.1 percentage points than last month; up 3.9% year-on-year, the same rate as last month.
Data show that the line cities new commodity residential sales prices continue to expand year-on-year.
For the future direction of the property market, Zhang Dawei, chief analyst of Centaline Property, expects that the land market in some cities is overheated and prices will still keep rising in the near future, and overall, prices on the mainland will maintain a slight upward trend in the first half of the year.
Some analysts believe that although the Chinese Communist authorities continue to launch the property market “control” policy, but did not extinguish the enthusiasm of the people to buy houses, the current investors still use real estate as a tool to hedge against global inflation.
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